A method of error compensation for an inertial measurement unit is provided. The method comprises providing a first object including an inertial measurement unit, providing a second object proximal to the first object, and determining an initial position and orientation of the first object. A motion update is triggered for the inertial measurement unit when the second object is stationary with respect to a ground surface. At least one position vector is measured between the first object and the second object when the first object is in motion and the second object is stationary. A distance, direction, and orientation of the second object with respect to the first object are calculated using the at least one position vector. An error correction is then determined for the inertial measurement unit from the calculated distance, direction, and orientation of the second object with respect to the first object.